MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1183
AMENDING AND CONSOLIDATING THE PROVISIONS ON TRAVEL TAX OF REPUBLIC ACT NO. 1478 AS AMENDED AND REPUBLIC ACT NO. 6141, PRESCRIBING THE MANNER OF COLLECTION THEREOF, PROVIDING PENALTIES FOR VIOLATIONS THEREOF, AND FOR OTHER PURPOSES
WHEREAS, it is the policy of Government to lessen the restriction on foreign travel;
WHEREAS, in order to provide adequate funds for the Government programs, simplify the collection of the tax, and minimize tax avoidance, there is need to impose a Travel Tax in lieu of the taxes now being imposed under Republic Act No. 1478, as amended and Republic Act No. 6141;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:
Section 1. There is hereby imposed, in lieu of the travel taxes levied under Section three of Republic Act No. 1478, as amended, and Section six of Republic Act No. 6141, a Travel Tax from all...
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Presidential Decrees
Amending And Consolidating The Provisions On Travel Tax Of Republic Act No. 1478 As Amended And Republic Act No. 6141, Prescribing The Manner Of Collection Thereof, Providing Penalties For
Presidential Decree No. 1183
Summary of Presidential Decree No. 1183
Travel Tax Imposition and Rates (Section 1):
- Imposes a Travel Tax on Filipino citizens, permanent resident aliens, and non-immigrant aliens who have stayed in the Philippines for at least one year.
- The tax is based on fares for trips from and to the Philippines, as well as fares paid in foreign countries.
- The Secretary of Finance shall prepare a Schedule of Travel Tax rates, subject to the President's approval.
- The tax shall not exceed 15% of the fare, but with minimum rates of:
- ₱2,000 for first-class passage
- ₱1,250 for economy class passage
- ₱750 for all others
- Individuals aged 12 or below shall pay 50% of the tax.
Exemptions (Section 2):
- The following are exempt from the Travel Tax:
- Philippine government officials and employees traveling on official business. (Section 2a)
- Persons whose fares are paid out of Philippine government funds. (Section 2b)
- Foreign diplomatic and consular officials, and their immediate families and household domestics. (Section 2c)
- United Nations officials, consultants, experts, and employees, and those exempted under existing laws, treaties, and international agreements. (Section 2d)
- Personnel of multi-national companies with regional headquarters in the Philippines but not engaged in business in the country. (Section 2e)
- Officials and employees of private companies traveling on official business, whose fares are paid by the company, and the company has already paid ₱4,000 or more in travel tax for the employee's previous travels in the same calendar year. (Section 2f)
- Crew members of international ships and airplanes joining or leaving their vessels or being repatriated upon termination of employment. (Section 2g)
- Filipino citizens who are permanent residents of foreign countries, have stayed in the Philippines for less than one year, and whose fares are paid in acceptable foreign currencies or payable outside the Philippines. (Section 2h)
- Bona-fide students whose studies abroad have been approved by the NEDA Scholarship Committee. (Section 2i)
- Non-professional contract workers with approved employment contracts, their spouses, and dependents aged 21 or below. (Section 2j)
- Infants aged two years or less. (Section 2k)
Non-Revenue Tickets (Section 3):
- Persons traveling on non-revenue tickets shall pay the Travel Tax based on the classification of their non-revenue tickets, except airline and shipping personnel traveling on official company business.
- Discounted tickets and tickets with service fees are not considered non-revenue tickets for the purpose of exemptions.
Tax Collection (Section 4):
- For departing passengers, the Travel Tax shall be collected by the carrier or travel agency issuing the ticket, and remitted to the Bureau of the Treasury within the first 10 days of the succeeding month.
- For arriving passengers, the Travel Tax shall be paid by the passenger within 30 days from the date of arrival, based on fares paid in a foreign country.
Tax Clearance (Section 5):
- Persons traveling must establish their capacity to pay the overall costs of the travel when applying for a Tax Clearance.
Rules and Regulations (Section 6):
- The Secretary of Finance and the Secretary of Tourism shall promulgate rules and regulations to carry out the provisions of this Decree and for the effective collection of the tax.
Penalties (Section 7):
- Any person violating or causing another to violate any provision of this Decree, or making any material misrepresentation in connection with it, shall be subject to:
- Imprisonment of 2 to 5 years, or
- A fine of ₱2,000 to ₱10,000, or both, at the court's discretion.
- Violations shall also constitute grounds for revocation of privileges, permits, and authorizations granted by government agencies.
- If the offender is a corporation, the penalty shall be imposed on the principal officer(s).
- If the offender is an alien, they shall be deported in addition to the prescribed penalties.
- If the offender is a public official or employee, they shall be dismissed from service and perpetually disqualified from holding public office, in addition to the prescribed penalties.
Repealing Clause (Section 8):
- The provisions on travel tax of Republic Act No. 1478, as amended, and Republic Act No. 6141, and all other inconsistent laws, orders, proclamations, decrees, rules, and regulations are hereby repealed or modified accordingly.
Effectivity (Section 9):
- This Decree shall take effect immediately.
Travel Tax Imposition and Rates (Section 1):
- Imposes a Travel Tax on Filipino citizens, permanent resident aliens, and non-immigrant aliens who have stayed in the Philippines for at least one year.
- The tax is based on fares for trips from and to the Philippines, as well as fares paid in foreign countries.
- The Secretary of Finance shall prepare a Schedule of Travel Tax rates, subject to the President's approval.
- The tax shall not exceed 15% of the fare, but with minimum rates of:
- ₱2,000 for first-class passage
- ₱1,250 for economy class passage
- ₱750 for all others
- Individuals aged 12 or below shall pay 50% of the tax.
Exemptions (Section 2):
- The following are exempt from the Travel Tax:
- Philippine government officials and employees traveling on official business. (Section 2a)
- Persons whose fares are paid out of Philippine government funds. (Section 2b)
- Foreign diplomatic and consular officials, and their immediate families and household domestics. (Section 2c)
- United Nations officials, consultants, experts, and employees, and those exempted under existing laws, treaties, and international agreements. (Section 2d)
- Personnel of multi-national companies with regional headquarters in the Philippines but not engaged in business in the country. (Section 2e)
- Officials and employees of private companies traveling on official business, whose fares are paid by the company, and the company has already paid ₱4,000 or more in travel tax for the employee's previous travels in the same calendar year. (Section 2f)
- Crew members of international ships and airplanes joining or leaving their vessels or being repatriated upon termination of employment. (Section 2g)
- Filipino citizens who are permanent residents of foreign countries, have stayed in the Philippines for less than one year, and whose fares are paid in acceptable foreign currencies or payable outside the Philippines. (Section 2h)
- Bona-fide students whose studies abroad have been approved by the NEDA Scholarship Committee. (Section 2i)
- Non-professional contract workers with approved employment contracts, their spouses, and dependents aged 21 or below. (Section 2j)
- Infants aged two years or less. (Section 2k)
Non-Revenue Tickets (Section 3):
- Persons traveling on non-revenue tickets shall pay the Travel Tax based on the classification of their non-revenue tickets, except airline and shipping personnel traveling on official company business.
- Discounted tickets and tickets with service fees are not considered non-revenue tickets for the purpose of exemptions.
Tax Collection (Section 4):
- For departing passengers, the Travel Tax shall be collected by the carrier or travel agency issuing the ticket, and remitted to the Bureau of the Treasury within the first 10 days of the succeeding month.
- For arriving passengers, the Travel Tax shall be paid by the passenger within 30 days from the date of arrival, based on fares paid in a foreign country.
Tax Clearance (Section 5):
- Persons traveling must establish their capacity to pay the overall costs of the travel when applying for a Tax Clearance.
Rules and Regulations (Section 6):
- The Secretary of Finance and the Secretary of Tourism shall promulgate rules and regulations to carry out the provisions of this Decree and for the effective collection of the tax.
Penalties (Section 7):
- Any person violating or causing another to violate any provision of this Decree, or making any material misrepresentation in connection with it, shall be subject to:
- Imprisonment of 2 to 5 years, or
- A fine of ₱2,000 to ₱10,000, or both, at the court's discretion.
- Violations shall also constitute grounds for revocation of privileges, permits, and authorizations granted by government agencies.
- If the offender is a corporation, the penalty shall be imposed on the principal officer(s).
- If the offender is an alien, they shall be deported in addition to the prescribed penalties.
- If the offender is a public official or employee, they shall be dismissed from service and perpetually disqualified from holding public office, in addition to the prescribed penalties.
Repealing Clause (Section 8):
- The provisions on travel tax of Republic Act No. 1478, as amended, and Republic Act No. 6141, and all other inconsistent laws, orders, proclamations, decrees, rules, and regulations are hereby repealed or modified accordingly.
Effectivity (Section 9):
- This Decree shall take effect immediately.